Discharge of attorney fees from a divorce in a bankruptcy is a commonly asked question. Does Colorado Bankruptcy allow the filer to discharge divorce attorney’s fees ? The bankruptcy process in Colorado is not different from the bankruptcy process in other states. The rules and regulations are established on a federal level. Therefore, the state of Colorado does not set any bankruptcy rule like the debts that can be discharged in bankruptcy. If you’re planning to discharge your divorce attorney’s fees in bankruptcy, then it may depend on your case. In Colorado, you need to hire debt attorneys who are proficient in tackling the bankruptcy cases.
Therefore, you need to take a bird eye view in order to get detail information whether you can discharge your divorce attorney fees in bankruptcy.
Chapter 7 and Chapter 13 are two types of personal bankruptcy to get rid of unsecured debts. Chapter 7 is popularly known as liquidation bankruptcy and Chapter 13 is commonly known as Wage Earner’s bankruptcy.
In Chapter 7 Bankruptcy, the bankruptcy trustee may liquidate the non exempted assets of the filer to pay off the creditors. When you file under chapter 13 bankruptcy, you need to pay off the debts by setting a monthly payment plan for a period of up to five years.
You can mange to include most of the debts when you file petition with the bankruptcy court. However, you may not be able to discharge debts incurred from child support, criminal restitution or court-ordered payments, federal taxes and student loans. If you’re planning to discharge your divorce attorney fees, then you need to carefully analyze the way you have incurred the fees.
The judge has the legal authority to compel anyone of the parties to pay legal fees. Therefore, when you file bankruptcy, the attorney fees that the judge ordered to pay may not be discharged in bankruptcy in Colorado as well as in other states.
When the attorney fees are discharged in bankruptcy?
If the court has not ordered to pay fees you owe to the lawyer, then you can manage to discharge the divorce attorney fees in bankruptcy. However, you may not be able to discharge your own attorney fees. You may repay a portion of the debt when you file under chapter 13 Bankruptcy. But when you file under Chapter 7 bankruptcy, your total attorney fees are discharged by the bankruptcy court.
Therefore, before you include your divorce attorney fees in bankruptcy, you need to remember the above mentioned points in mind.
Please visit us on the web at www.busby-lee.com
We provide bankruptcy services in the greater Houston metro area including the cities of Katy, Sugarland, Pearland, Friendswood, Clear Lake and Galveston. We also handle cases from The Woodlands, Spring and Tomball and cases in Baytown and Channelview.
We handle bankruptcy cases in all of these counties: Brazoria, Chambers, Galveston, Matagorda, Austin, Brazos, Colorado, Fayette, Fort Bend, Grimes, Harris, Madison, Montgomery, San Jacinto, Walker, Waller, Wharton